SASOL LIMITED · SASOL LIMITED Sustainability ... • Evaluating scenario ... in contributing to the socio-economic development of the communities where we operate, and need

SASOL LIMITEDSustainability Reporting

Supporting information to the Integrated Report 30 June 2017

ABOUT THIS REPORT

This report, presented as supporting information to our Integrated Report, provides a concise overview of our approach to managing our material sustainability issues, with a greater appreciation of the strategic value of social, human and natural capital. Information which has been comprehensively addressed previously has not been repeated in this report. Similarly, relevant information contained in the suite of reporting publications is cross-referenced.

Through our sustainability reporting we seek to facilitate inclusive and meaningful dialogue for the purposes of partnering with our stakeholders.

We communicate regularly with a broad stakeholder base on issues of significant interest or impact to them, including our performance, decisions and activities in relation to the environment.

We achieve this through other means of reporting, disclosure, optimisation of access to information and stakeholder engagements.

SUSTAINABILITY REPORTING

Supporting information to the Integrated Report

Supplementary information, including glossary, acronyms and abbreviations, is available on the Sasol website (in the downloads tab), or otherwise, as disclosed from time to time.

Our approach on leveraging transparency via requests for access to environmental information is explained in this publication.

Integrated ReportThe Integrated Report is our primary report to stakeholders.

SRSustainability ReportingSupporting information to the Integrated Report. Prepared in accordance with the GRI Sustainability Reporting Standards.

Form 20-F Our annual report issued in accordance with the Securities Exchange Act of 1934.

Annual Financial Statements The financial statements and remuneration report, prepared in accordance with International Financial Reporting Standards.

CONTENTS

ENVIRONMENTAL SUSTAINABILITY

16-17 Environmental compliance

18 Sustainable air quality

19 Climate change and energy efficiency

20 Water stewardship

21 Waste, contaminated land and biodiversity

22 Product stewardship

DATA AND ASSURANCE

24 Human capital – Our people

25 Natural capital – The environment

26 Social capital – Society

29 Independent assurance report

31 Additional information

HUMAN CAPITAL MANAGEMENT

06-07 Promoting employee and service provider safety

08-09 Focusing on occupational health and employee wellbeing

10-11 Developing and empowering values-driven, high-performing people

12 B-BBEE initiatives and supply chain management

13 Ethical behaviour

14 Human rights

OUR APPROACH TO SUSTAINABILITY REPORTING

4 Material matters

Sasol Sustainability reporting 2017 1

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• We play an active role in developing and implementing the global chemical industry’s Responsible Care® initiatives, and participate in working groups of the European Chemical Industries Council (CEFIC) and South African Chemical and Allied Industries Association (CAIA).

• We retained our focus on meeting the eight elements of Responsible Care®.

• We have been a signatory to the United Nations Global Compact (UNGC) since 2001, and in March 2008 we endorsed the UNGC CEO Water Mandate.

• We sustained our commitment to industry best practices through our membership of the International Council of Chemicals Associations (ICCA) and the Chemicals Policy and Health Leadership Group (CP&H LG).

• We worked with the International Council of Chemicals Associations (ICCA) to promote safe chemicals management in Africa.

• We support the principles of the Extractive Industries Transparency Initiative (EITI).

• We participated in the annual climate change and water disclosures of the CDP.

• We are a member of the National Business Initiative (NBI).

• We are a member of the Strategic Water Partners Network (SWPN).

SUPPORTING GLOBAL INITIATIVES

TO SUSTAINABILITY REPORTING

Dear Stakeholder,

Sasol recognises that we have a particular responsibility to respect and care for the health and safety of our people, the environment and communities where we operate. We endeavour to continue delivering on our commitment to achieve zero harm and sustainability. This report sets out the importance of sustainability to our business and reflects on what Sasol has achieved over the past year, as well as how we can further position ourselves in relation to socio-economic pressures, particularly in the climate change arena, the Liquid Fuels Charter and the Broad-Based Black Economic Empowerment (B-BBEE) Charter for the South African Mining and Minerals Industry for our South African operations.

Building on the 2000 foundation of Sasol’s first formal commitment to sustainable development as a strategic priority, we recognise that the path to sustainability is a long-term journey.

Our frameworkWhile our strategy positions us for profitable, sustainable and inclusive growth, in an uncertain environment, characterised by resource pressures and growing demands for equitable access, there was a need to formalise and consolidate an approach to sustainability across the Group. We formalised the Sasol Sustainability Framework (the Framework), aimed at facilitating improved and integrated sustainability thinking across the Group, while guiding internal processes to allow for flexibility and continuity in decision-making. It is premised on the six capitals model, with a view that in using the six types of capital to deliver products or services, a sustainable organisation will be maintained and, where possible, enhance these stocks of capital assets while considering the wider sustainability issues affecting long-term profitability.

The following principles form the cornerstones of integrated thinking across the Group and have also informed the development of the Framework:• future business focus: geared to develop

organisational competencies creating both financial and societal value;

• partnership and transparency: a commitment to ethics and openness as the basis of trusted relationships;

• resource efficiency: optimising value in the context of increased resource pressure; and

• tangible opportunities for shared value: leveraging investments and positioning the Group to create value for the communities within our operational context.

The Framework is presented as a maturity curve evolving through four distinct stages, as outlined on the following page. This allows for flexibility across the Group as various operations are able to position at different stages appropriate to their strategy and business proposition. The stages are intended to be flexible enough to allow for learning and growth, at the same time encourage internal and external stakeholders to engage in dialogue on our value creation. The stages also guide us on how we manage the material matters.

We trust that you will find our sustainability reporting information, supplementing our Integrated Report, helpful and informative.

Dr Mandla SV GantshoChairman

28 August 2017

OUR GOAL

• to responsibly address our environmental challenges with consideration for the interest of our stakeholders; and

• to uphold our value and commitment to zero harm by ensuring a safe and healthy workforce and reliable, safe, and sustainable operations.

Sasol Sustainability reporting 20172

OUR SUSTAINABILITY FRAMEWORK

Key feature: achieving legal compliance, and implementing various corporate social investment (CSI) initiatives.

Key feature: holistically managing Environmental, Social and Governance (ESG) risks and opportunities.

Key feature: creating economic value while creating value for society by addressing its needs and challenges; and positioning Sasol as a credible stakeholder partner.

Key feature: new and innovative thinking which challenges traditional models and moves towards becoming a sustainability ambassador.

COMPLIANCE, TRANSPARENCY

AND CSI

ESG RISK-BASED APPROACH SHARED VALUE DISRUPTIVE

ENGAGEMENT

FOUR DISTINCT STAGES

We prioritise compliance with all applicable laws and requirements of environmental authorisations.

• Reporting of incidents and deviations from regulatory conditions as per legal requirements.

We have internalised ESG requirements in our risk-based approach.

• Measuring and reporting against quantified targets as part of our internally aligned ESG approach, which recognises our impact on the environment and society. This is informed through our ongoing stakeholder engagement with interested parties.

We have restructured to integrate Strategy, Stakeholder Relations and Enterprise Development functions to create value for society.

• Remaining committed to our growth plans in Mozambique, in line with our strategy of joint value creation for the Government of Mozambique and Sasol.

We have some pockets of disruptive engagement in our business model.

• Developing new technologies in the chemicals arena, such as applications for the use of ultra-high purity calcined alumina products, (eg high-purity ceramics and synthetic sapphire), which contribute to energy efficiency.

SASOL FEATURES

SASOL EXAMPLES

SASOL SPANS THE VARIOUS STAGES AS APPROPRIATE TO ITS STRATEGY

Sustainability Reporting in this context aims to provide information of specific relevance to certain stakeholders. The primary focus of our Sustainability Reporting is on two material matters: ‘Human capital management’ and ‘Environmental sustainability’ while the other material matters are addressed in the Integrated Report.


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In 2017, we identified five material matters:

Our approach to reporting on material matters

By assessing:• Materiality• Impact of delivering on our

strategy• Risk metrics in the context

of our strategy

Through: • Assessing impact on

risk tolerance and risk appetite

• Actioning activities required to manage material matters

• Evaluating scenario modelling outcomes

• Evaluating trade-offs between capitals

• Plausible outcomes to the Board

• Report to stakeholders

By reviewing:• Board submissions• Quarterly submissions to the

Group Executive Committee• Our operating environment• Risk management process

and findings• Stakeholder issues

step 1 IDENTIFY

step 2 PRIORITISE

step 3 RESPOND

STAKEHOLDER INCLUSIVENESS

step 5 REVIEW AND

MONITOR

SUSTAINABILITY CONTEXT

MACRO-ECONOMIC ENVIRONMENT

The volatile macro-economic environment requires us to maintain our cash-conservation and savings initiatives, while effectively allocating capital for growth projects and improving our competitive position.

DELIVERING VALUE-BASED GROWTH

Driving continuous improvement, harnessing technology and talent, developing a diverse portfolio and embracing more digital solutions enables us to deliver superior value to our stakeholders and ensure long-term sustainability.

HUMAN CAPITAL MANAGEMENT

Promoting safety, diversity and cultural transformation as well as attracting, developing and retaining high-performing people, while engaging all employees and respecting human rights.

ENVIRONMENTAL SUSTAINABILITY

Securing our licence to operate by driving sustainable air quality, waste and land risk management, responding to the climate change and energy security challenges, promoting water stewardship and ensuring responsible product stewardship.

COMMITMENT TO OUR COMMUNITIES

Consistently delivering on our commitments to community stakeholders and optimising the impact of our social investment programmes by increasing local content and collaborating more broadly to address social and economic development challenges.

MATERIAL MATTERS

step 4 REPORT

• Report plausible outcomes to the Board

• Report to stakeholders


MANAGEMENT

Our approach to partnering with our stakeholders is explained in the Integrated Report.

Sasol’s most important asset is our people. Our business thrives from having access to:

• a diverse, values-driven and skilled leadership team that provides the strategic direction and oversight needed to deliver on our agreed objectives;

• a safe, healthy, engaged and productive workforce, with the required skills, knowledge and experience; and

• appropriately appointed skilled and experienced service providers, who deliver against agreed terms and conditions.

To maintain our ability to deliver value-based growth through our people, we invest significantly in:• our goal of zero harm and ensuring world-class

safety performance through our One Sasol SHE Excellence Approach;

• effectively managing occupational health risks across the workplace and providing an integrated health and wellness approach for all our employees and service providers;

• embedding a values-driven, high-performance culture across the Group that embraces empowered accountability and incentivises positive behaviour;

• providing an appropriate employee relations environment that encourages input and involvement; and

• developing diverse, high-performing employees and nurturing future talent, through our various leadership, career and skills development initiatives.

We recognise that, in addition to running our businesses profitably, we have a critical role to play in contributing to the socio-economic development of the communities where we operate, and need to be responsive to the growing and legitimate expectations of our stakeholders and communities.

To create an enabling environment for investment, we strive to integrate the needs of all our key stakeholders into our business process:• we engage regularly with our fenceline

communities and track our social performance indicators through our community scorecards;

• we invest in social investment programmes that focus on investing in education and skills development, community development, small business enablement and environmental protection across our operations globally;

• through our preferential procurement practices and local content requirements, we provide a valuable opportunity to drive social and economic transformation within our sphere of influence; and

• we promote high ethical standards, combat corruption and promote respect for human rights across our activities, by creating awareness of our Code of Ethics, providing an independent whistle-blowing facility, and conducting periodic human rights due diligence reviews of our activities and new business opportunities.

Our mining operations continue to promote social and economic development in their host communities through focused local economic development (LED) projects. Our LED projects have been concluded with the local municipalities as part of their Integrated Development Plans (IDPs) and are included in the Social and Labour Plan (SLP) to 2020. The projects combine identification of community infrastructure needs and development of local black-owned companies. More information is available in the Mining Booklet and Our Approach to our Communities Booklet (links below).

In the following pages you will read more about our approach to safety, occupational health and wellbeing, developing and empowering values-driven, high-performance people, Broad-Based Black Economic Empowerment (B-BBEE) initiatives and supply chain, ethical behaviour and human rights.

For more information refer to our Sasol Mining Booklet Community Local Economic Development Projects. Mpumalanga, Free State and Limpopo on www.sasol.com (in the downloads tab).

A section in the Integrated Report, supported by a booklet on www.sasol.com (in the downloads tab), explains our approach to our communities.

A section in the Integrated Report, supported by a booklet on www.sasol.com (in the downloads tab), explains our approach to our human capital management.


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OUR INITIATIVES IN 2017

Promoting employee and service provider safety

Promoting safetyAt Sasol, our risk-based One Sasol SHE Excellence Approach provides a framework for our efforts to reach zero harm. We assigned accountability across our operations to provide inspirational leadership in our safety efforts, enabled by the Group Safety, Health and Environment (SHE) function. Our approach centres on understanding and managing our risk profile and implementing a standardised control regime across the company, strengthened by clear policies and procedures, leading practice incident investigation and behavioural science.

Risk analysisWe continue to focus on developing a list of precursors, with the intent of proactively identifying the potential for the occurrence of high-severity incidents with the aim of preventing these from materialising.

Incident management processOur approach to incident management is evolving from its predominant focus on prevention to include caring for injured employees. Despite our Recordable Case Rate (RCR) declining steadily, the number of high-severity injuries, as evidenced by the fatalities and life-altering injuries, is not declining.

We appreciate that while current safety efforts are improving, we need additional action to prevent the higher severity injuries. We have revised our current severity measurement to further categorise injuries in terms of actual and potentially fatal, life-altering and/or life threatening outcomes.

By tracking and identifying trends on the actual and potential severity of injuries, we are providing proper focus to those incidents that have the greatest potential for harm. This enables us to streamline our resource allocation during incident investigations and ensure focused attention on identifying the control failures and extracting and communicating learning from these incidents to prevent recurrence.

Service provider safety managementWe have implemented a standardised service provider management process. The inherent risk relating to the scope of supply of services was evaluated to ensure risk-based management of service providers. We have provided operations personnel with a standardised assessment process to ensure on-going assurance of service provider compliance and desired safety performance.

SHE related trainingAll our employees undergo a regular risk-based SHE Induction programme. We have reviewed our SHE competency profiles to drive our goal of zero harm by ensuring a competent employee workforce. Permit-specific training requirements are identified and training conducted as required.

Emergency managementEach of our operating facilities has risk-based procedures that are in line with Group guidance relating to emergency management. Emergency procedures are tested at least annually, including transport-related emergency management.

At Sasol pursuing zero harm is a top priority.

Our activities are managed in a way that eliminates incidents,

minimises risk and promotes excellence in the performance of our

operations with cognisance of our impact on our environment and

on the communities within which we operate.


During 2017, we strengthened our view of our top SHE risk profile in relation to identifying and managing our critical controls to address priority improvement areas, as informed by recent incidents. We continue to document and share learnings regarding assurance of our critical preventative and corrective controls.

The concept of high-severity incidents has been introduced as part of incident management to ensure adequate allocation of resources and attention to these incidents. High-severity incidents cause, or have the potential to cause the most harm to Sasol, its people and resources.

OUR 2017 PERFORMANCE

Number of significant and major FERs

Num

ber o

f sig

nific

ant

FERs

Significant FERs Target

2010 2011 2012 2013 2014 2015 2016 20170

10

20

30

40

50

60

70

Group Recordable Case Rate (RCR):

0,28Number of significant fires, explosions and releases (FERs):

21

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Recordable Case Rate (RCR)

Reco

rdab

le C

ase

Rate

(RCR

)

RCR Until 2005 Service providers and illnesses were not included

Target 2020

2001 2017

Notwithstanding our relentless safety focus, tragically there were five work-related fatalities, the details of which are covered in the IR (page 33).• Mr Johannes Mashili and Mr Themba Mahlangu worked at

Sasol Mining.• Mr Gideon Coetzee and Mr Carl Vermaak worked at Supply

Chain.• Mr Tyler Truett was a service provider employee at our

United States Lake Charles Chemicals Project (LCCP).

These incidents have been rigorously investigated, preventative measures implemented and the learnings shared between our Operating Model Entities (OMEs).

Specific focus from the fatality incidents included: • the understanding of the root causes of critical control

failures;• the sharing of learnings; and • a reinforced approach to behaviour transformation as

well as behaviour based safety.

In addition to the corrective and preventative actions from the investigations, guidelines were issued for the use of motor vehicles and the use of cellular phones for business travel.

There were no major process safety incidents in 2017, in line with the Sasol Group target of zero incidents.

21 process safety significant incidents occurred in 2017, less than our target of fewer than 26 incidents. The severity of the significant process safety incidents has also reduced in 2017.

The significant incidents have been thoroughly investigated and control measures implemented to improve management systems. As part of our improvement plan, a more detailed analysis of our incidents is being undertaken to determine overall trends in management system failures for a more focused approach. Focus is also given to potential high-severity process safety incidents.


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Integrated ReportHuman capital: Safety


Focusing on occupational health and employee wellbeing

Strategic focusOur revised strategic focus has introduced an integrated occupational health and wellness risk management framework as a proactive measure to prevent and mitigate known risks. The aim of this holistic approach is to achieve long-term health and wellness performance, maintaining a healthy workforce that is able to work safely and productively for the duration of their careers.

This focus involves:

• applying a cohesive risk mitigation methodology;

• competent and skilled occupational health professionals working according to uniform performance requirements; and

• supporting management systems that enable integrated performance reporting.

Risk-based occupational hygieneOur risk-based approach allows us to evaluate, analyse, monitor and manage exposure and provide preventative measures for a range of occupational health risks. This includes a hierarchy of control for known exposure, from at-source elimination through engineering design, to exposure reduction strategies, including administrative controls and the provision of suitable personal protective equipment.

Medical emergency responseA fit-for-purpose ‘injury on duty’ and medical emergency management programme, including medical emergency response planning to limit the potential long-term health consequence of workplace accidents, is in place for our global operations.

Our commitment to zero harm includes effectively managing health risks in the

workplace, through an integrated health and wellbeing approach for our employees and service

providers to achieve a healthy, capable and stable

workforce.

We enable a healthy workforce that is fit-for-work and able to work safely and productively throughout their careers at Sasol

A renewed focus on occupational health communication was established over the past year with specific emphasis on adequate and effective hearing conservation, the effects of potential exposure to specific hazardous chemical substances, promoting healthy living options and offering preventative screening available at selected operations.



Standardisation of health data sources has resulted in improved data accuracy and completeness, enabling better assessment of health trends.

During the year there was an improvement in the number of statutory reported occupational diseases, down to 39 from 55 in the previous financial year, contributing to an improved occupational incident rate (ODIR) of 0,045. A contributory factor to the decrease was the improved and proactive diagnostic screening in our medical surveillance processes, in addition to our improved understanding of noise and dust monitoring.

We retain our ongoing focus on hearing conservation and dust suppression initiatives for our operations. This is to ensure ongoing mitigation of noise-induced hearing loss (NIHL) and lung disease, predominantly coal-worker’s pneumoconiosis at our operations in South Africa,these being the most frequently reported occupational diseases across the Group.

Hearing conservationContinuous improvement relating to the reduction of noise sources was achieved through the deployment of new technologies, mainly at our mining operations in South Africa, resulting in us meeting equipment-noise milestone targets.

The investigation process for noise over-exposure has been revised and includes non-reportable percentage loss of hearing cases. This will enable effective implementation of preventative controls and will prevent further exposure of affected employees to noise.

During 2017 we focused on improving the content of Sasol’s training related to the effects of hearing loss, the adequacy and effectiveness of hearing protection and the prevention of future noise-induced hearing losses.

Managing long-term exposure to hazardous chemicals The established coal dust suppression initiatives at our mining operations have advanced by introducing new generation mining and ventilation technologies. Leadership engagement constructively contributed to dust exposure compliance.

Potential and known exposure to identified carcinogens and teratogens within the petrochemical environment is closely monitored through both occupational and biological exposure monitoring programmes, applying relevant national standards and international best practices.

The targets set by the World Health Organization (WHO) to reduce infections of HIV globally are set at 90/90/90 by 2030:

The 90s Sasol outcomes 2017

Represents the percentage of people that should be tested for HIV in any given population.

The first 90 88% tested; (90% by 2030).

Represents the percentage of people that have tested HIV positive to be on treatment.

The second 90 95% of people that tested HIV positive are on therapy.

Represents the percentage of people who are HIV positive, on therapy, and have a suppressed viral load.

The third 90 89% of people on therapy have a suppressed viral load.

We continue screening, monitoring and awareness campaigns.

Achieved an HIV/Aids drug utilisation compliance level of

95%7 806 employees and contractors took up HIV screening, counselling and testing, up from 3 273 in 2016

HIV/Aids programmeWe continued to implement our HIV/Aids response programme, focusing on prevention through awareness, education and access to testing, counselling and treatment. We provided support services to HIV positive employees, service providers, and their families.


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Developing and empowering values-driven, high-performing people

Developing diverse, high-performing employees and nurturing future talentWe continued sponsoring studies and technical learning programmes, as well as supporting leadership, career and succession development initiatives. To secure a pipeline of future talent, we invested significantly in skills development, ranging from basic literacy and school level programmes to technical training for professionals, through some of the largest bursary, graduate development, learnerships and internship programmes in Southern Africa. These programmes also contribute towards our national skills development and youth employment strategies.

Embedding our values-driven, high-performance cultureWe continued to make progress on our high-performance culture transformation journey which includes embedding our three critical behaviours: work to a common game plan; adopt a One Sasol, one bottom-line approach; and embrace empowered accountability. We are taking measures to address the following improvement areas identified in our employee engagement survey: visible leadership; teamwork and collaboration; employee growth and development; reward and recognition; and diversity and inclusion. We are integrating these measures into the next phase of our group-wide cultural transformation journey, and also used the findings to inform the process for refreshing the Sasol vision, purpose and values.

Enhancing Business Performance Our current business environment, supported by our cost-saving programmes and the low oil price Response Plan cash-conservation initiative, has resulted in us prioritising focused spending on developing critical skills and leadership capability across our operations.

Rewarding high performance, incentivising positive behaviourWe maintained our performance management and remuneration frameworks, designed to reward employees for their performance, giving equal emphasis to delivery and behaviour. Every OME’s incentive scorecard sets minimum targets for safety performance, financial results and, in our South African operations, for employment equity.

Diversity and inclusion We continued to implement our diversity 10-Point Plan, which provides a set of qualitative measures designed to enable the achievement of our diversity objectives, including the recruitment, development and retention of candidates from under-represented groups, as well as measures to enhance gender equity.

Maintaining positive employee relationsSasol recognises the right of employees to collective bargaining and to freedom of association in accordance with all relevant local labour legislation. We maintain constructive relationships with all representative unions and works councils that enjoy consultative or negotiating powers on issues of mutual interest. In South Africa, the tough macro-economic climate and recent political turbulence had an impact on our employee relations over the past year. For the first time in many years, there was a prolonged strike at our Mining operations, which lasted 79 days. Therefore, restoring a positive relationship with our employees, and enhancing our engagement levels to ensure optimal productivity, is a key priority for us.


R192 millionin bursaries, learnerships, apprenticeships and internships

R96 millionon graduate professionals development programmes

Investments

1 250 learners,apprentices and internships

25 967 employeesparticipated in our internal learning and development programmes

Employee training

2 005 employeesreceived leadership training


5%total employee turnover rate

62%adherence rate towards the achievement of our employment equity targets in South Africa

Employees

3,3%absenteeism rate

For further details please refer to performance tables on page 24.

Our human resources strategy

seeks to enable effective delivery of Sasol’s business

strategy. We strive to provide a work environment that attracts,

develops and retains the best talent, promotes a values-driven, high-performance culture, encourages

diversity and inclusion, and fosters sound employee

relations.


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B-BBEE initiatives and supply chain management

Sasol’s values inform our behaviour and how we work with our key stakeholders, including our customers, suppliers, shareholders, partners and the communities we serve. The Sasol supply chain function controls Sasol’s external spend and is responsible for ensuring the sustainable supply of utilities, goods, services and products. Our preferential procurement practices and local content requirements provide a valuable opportunity to drive social and economic transformation within our sphere of influence.

HIGHLIGHTS

• We conducted approximately 621 supplier safety audits based on standard Sasol supplier requirements.

• Our combined preferential procurement expenditure in the Sasolburg and Secunda regions increased in 2017 to R2,6 billion, up from R2,2 billion in 2016.

2017 AT A GLANCE

This year we implemented our supply chain governance framework, which provides a set of minimum standards aimed at ensuring sound and standardised execution of Sasol supply chain processes, within applicable legal, regulatory and Sasol-specific requirements. We have been implementing group-wide controls to mitigate the risks within each of the following four priority areas:• significant safety or environmental incidents;

• ensuring compliance with legal requirements;

• business enablement through the required technology; and

• avoiding disruption of supply of material and services.

In South Africa and Mozambique, we focus specifically on promoting local spend around our major operating hubs, as well as targeting black-owned enterprises to support Broad-Based Black Economic Empowerment (B-BBEE). We have implemented a supplier set-aside strategy to accelerate achievement of our preferential procurement targets, and increase our spend in South Africa on exempted micro-enterprises (EMEs) and qualifying small enterprises (QSEs) to meet our B-BBEE commitments in line with meeting our goal of reaching at least a level 4 status by 2020. This has required moving from our traditional consolidation of suppliers to a more fragmented approach, as well as following a regional approach to increase local spend.

We have identified specific ‘set-aside commodities’, where business will be directed only to new EME and QSE black-owned suppliers who have little to no previous experience. These suppliers have been identified and are being assisted in terms of our supplier application and accreditation process. We have also implemented a support structure to assist the suppliers in their day-to-day operational challenges to ensure they conform with our requirements. Our enterprise supplier development teams continue to provide new and existing suppliers with targeted interventions and financial support aimed at enhancing their business.


Ethical behaviour

Promoting high ethical standards and combating corruption throughout our sphere of influence is an important part of our drive to deliver social value through our core activities.

HIGHLIGHTS

• 482 calls were made to the EthicsLine, many of which had multiple allegations. This represents a slight increase from the 472 calls reported for 2016.

• Of the 109 substantiated allegations, 48% related to dishonesty, 31% to irresponsibility, 12% to unfairness and the remainder to disrespect.

• The Group Ethics office provides assurance that appropriate corrective actions are taken on ethical transgressions.

• In four instances the disciplinary processes resulted in dismissals. In one additional instance the matter was reported to the South African Police Service. All five matters related to theft or fraud.

2017 AT A GLANCE

• Sasol’s Code of Ethics (the Code) which deals, among others, with anti-corruption and bribery has been communicated throughout the Group, with regular awareness sessions and training.

• At least every two years, senior and middle management, as well as employees identified as being in potentially exposed positions, are required to formally certify that they know and understand the Code and its associated guidelines. This certification process further supports efforts to fight corruption.

• Employees and other stakeholders can report any breach of the Code via the Sasol EthicsLine, our independently managed, anonymous reporting facility.

• Ethics culture surveys are periodically conducted by external parties.

• The extent to which employees behave in line with the Sasol values is part of Sasol’s system of performance management. The value, that we act with respect and integrity at all times, is underpinned in the Code. Behaviour deviances, in this regard, are addressed through appropriate consequent management, either disciplinary action or performance management.

Dishonesty Irresponsibility Unfairness Disrespect

Ethics allegation types (%)

substantiated

substantiated

allegations

allegations


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Human rights

At Sasol we acknowledge our responsibility to respect human rights, and to avoid complicity in human rights abuses throughout our operations and in our relationships with our service providers, suppliers and communities. Our policy on respecting human rights is incorporated in our Code of Ethics. The policy, which applies globally to all our employees and to all our service providers, defines our commitment to respecting human rights as set out in the United Nations (UN) Guiding Principles on Business and Human Rights, the International Bill of Human Rights and the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work.

OUR APPROACH

We conduct periodic human rights due diligence reviews of our activities and new business opportunities with the aim of avoiding adverse human rights impacts on our workforce, service providers and the communities in which we operate. We aim to make a positive and constructive contribution to the reduction and elimination of human rights abuses within our sphere of influence, and expect our suppliers, service providers, partners and customers to uphold the same standards.

Due to the nature, location and scale of our activities, our commitment to respecting human rights extends to:

• non-discrimination and respect of diversity;

• freedom of association and the right to collective bargaining;

• the right to a safe and healthy working environment;

• the prohibition of forced and child labour;

• establishing fair and competitive wages and benefits;

• respecting the rights of our local communities;

• security arrangements;

• protecting the environment; and

• managing our supply chain.

We prohibit all forms of forced or compulsory labour within our operations. We do not tolerate the use of child labour and ensure that all our employees are above the legal employment age in the country of their employment. When operating in areas or countries with high levels of conflict, poor human rights records or weak governance or conflict, we strive to follow the principles outlined in the Organisation for Economic Co-operation and Development Guidelines for Multinational Enterprises. Where national law conflicts with any of the human rights principles that we have committed to, we will respect the national law, while striving to honour the spirit of international principles such as the International Labour Organization Conventions.

Our Executive Vice President: Advisory and Assurance is responsible for the day-to-day human rights function and resources.

HIGHLIGHTS

• We evaluate all our investment decisions against the Sasol Code of Ethics in terms of the countries where we may invest, or the partners with whom we may consider doing business.

• Country-risk assessments are performed before entering any given country. These assessments include screening for potential human rights non-compliance or violations.

• As a signatory of the United Nations Global Compact (UNGC), we have again published an annual Communication on Progress reviewing our performance against each of the 10 UNGC principles, including the principles on human rights.

For more information refer to our UNGC COP on www.sasol.com (in the downloads tab).


SUSTAINABILITY

Prices reflect international commodities or baskets of commodities and are not necessarily Sasol specific.Sources: RSA Department of Energy, ICIS-LOR, Reuters, Platts, International Energy Agency

Sasol uses its technology, skills and capital assets to convert natural resources – such as coal, crude oil, natural gas and water – to generate financial and societal value. In generating this value, we have unavoidable impacts on the environment through the use of renewable and non-renewable resources, such as energy, water and land, as well our emissions and wastes.

Our commitment to environmental sustainability is to minimise the environmental impacts of our operations as reflected in our strategic decision not to pursue coal-to-liquids growth, and to focus on gas as a bridge to a lower-carbon economy.

We invest significantly in reducing our environmental footprint and in enhancing the positive environmental and social contribution of our products and processes:• we follow a strong risk-based approach to identifying and

managing our priority environmental impacts across our operations globally;

• we have adopted a transparent and collaborative approach to ensuring environmental compliance, and we engage regularly and proactively with regulatory authorities and other relevant stakeholders on our compliance performance as appropriate;

• we have reported annually on our environmental performance since 1996, when we were one of the first South African companies to publish an environmental report;

• we have invested more than R25 billion on capital projects, over the past twelve years, to minimise our environmental footprint. In South Africa, we have made significant progress recently with our volatile organic compound emissions abatement and coal tar filtration projects;

• delivery on air quality improvement roadmaps by our South African operations is key to sustaining compliance and through appropriate governance we oversee progress. Further postponements will be required to enable complete roadmap implementation by approximately 2025;

• we have set and report against targets for greenhouse gas mitigation, water and energy efficiency and air quality improvement;

• at each of our major operating sites, we have systems in place to monitor and respond to community concerns regarding our environmental performance;

• we constantly strive to enhance the safety and health impacts and environmental performance of our products throughout the product lifecycle, and we drive a product philosophy that encapsulates the concepts of a circular economy;

• we continue to invest in research and development, and we partner with others to find innovative environmental solutions related to our processes, products and by-products;

• we continue to refine our tracking, classifying and internal reporting on our environmental incidents;

• we have initiated a process to explore the role we play in contributing to the Sustainable Development Goals (SDGs), which were agreed in 2015 and are at the core of the 2030 Agenda for Sustainable Development; and

• we further improved our environmental transparency by making all the Atmospheric Emissions Licences (AELs) for our South African operations available on our website (www.sasol.com). We updated our Promotion of Access to Information Manual to provide for access to environmental authorisations and associated supporting documentation without formal requests.

www.sasol.com

The following pages cover in more detail our environmental and product stewardship matters.


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OUR APPROACH

Environmental compliance

Sasol is committed to compliance with all applicable laws and requirements arising from our environmental authorisations. Our environmental managers and subject matter experts support operations in managing compliance with these requirements.

We report incidents and deviations from regulatory requirements and limits and work in a transparent manner with the authorities in addressing any compliance challenges that may arise.

In the past year, our operations globally have been subject to various environmental authority inspections and associated compliance enforcement actions as highlighted below:

• In South Africa, the Department of Water and Sanitation (DWS) conducted various inspections at our Sasol Mining, Secunda Synfuels Operations (SSO) and Secunda Chemical Operations (SCO). They provided a notice of intention to SCO to issue a directive regarding the use of a product dam on-site. SCO subsequently confirmed the closure of the dam, subject to the execution of a rehabilitation plan expected to be completed in 2018. The DWS accepted Sasol’s representations, with ongoing monitoring. All other findings were addressed and satisfactorily closed out.

• The Department of Environmental Affairs (DEA) conducted inspections with a focus on air quality compliance at both Sasol’s and Natref’s operations (Sasol has majority shareholding in Natref) in Sasolburg. They provided a notice of intention to issue a compliance notice relating primarily to compliance challenges experienced by our Sasolburg Operations (SO), with emission limit values for some parameters applicable to three onsite incinerators regulated in terms of an Atmospheric Emissions Licence (AEL). SO provided details of ongoing and planned initiatives to enable and sustain compliance and engagements with the relevant authorities which are ongoing.

Natref received a notice of intention to issue a compliance notice regarding (among other) a perceived exceedance of a sulphur dioxide limit in its AEL. Natref submitted a response explaining the confirmed compliance.

The Gert Sibande District Municipality inspected Sasol’s operations in Secunda (SSO and SCO) with a focus on compliance with air quality and waste management. The outcome is pending. However in June 2017, the DEA issued the outcome of a previous air quality compliance inspection conducted at the Secunda complex and noted no major findings of concern.

• No final enforcement action has been taken, or fines and penalties imposed, as a consequence of any of the inspections in relation to our South African operations.

• In the United States, the Louisiana Department of Environmental Quality conducted inspections at the Lake Charles Chemicals Project (LCCP) and consequently issued a notice to mitigate emissions of nuisance particulates and dust caused by construction-related trucking. A dust control plan has since been implemented. Corrective measures were also implemented in response to a warning letter from the same authority to address a self-reported ethylene release by our Lake Charles Operations in Louisiana. Corrective measures were also implemented to address air permit violations in relation to our Greens Bayou Plant in Houston, Texas, following inspections by the Texas Commission on Environmental Quality.

• In Italy, our operations in Sarroch undertook an impact report and updated its continuous emission monitoring to address emission limit exceedances to air licences following an order issued by the Environmental Agency. Our operations in Augusta and Sarroch continue to engage with the regional environmental agency on remedial action regarding contaminated land and water to address matters raised during site visits conducted by the agency. The Sarroch operations paid a fine of 15 000 Euros regarding a deviation noted by the Ministry of Environment related to the updating of an Emergency Response Plan.

• Our operations in Brunsbüttel, Germany, commenced with a remediation project to address nitrogen oxide limit value exceedances associated with its high pressure hydrogenation unit. This was formally agreed with the applicable regulatory authorities in mitigation of enforcement action. Land risk management activities for the whole site, focusing initially on technical assessments to inform a remediation plan to meet anticipated new legal requirements, are ongoing.


Environmental compliance (continued)

We adopt a transparent and collaborative approach to environmental compliance management and engage with the authorities proactively where we identify compliance challenges. We disclose non-compliance with conditions of authorisations and the management thereof to the relevant authorities. Given specific stakeholder interest in our South African operations, we provide examples in this report of some of the significant compliance challenges reported and addressed:

• Significant environmental incidents associated with water uses and impacts were reported to the DWS. Sasol Mining reported activities in a delineated wetland promptly on becoming aware thereof and ceased all activities pending the implementation of an acceptable solution. Other reported incidents related to the inappropriate management of dirty water.

Natref reported an overflow of an onsite dam due to extreme rainfall experienced in February 2017. SO experienced similar overflows due to the same rainfall and also reported this to the DWS. The necessary remedial actions in all instances have been taken as informed by incident investigations. Following ongoing sampling campaigns, deviations from applicable water quality and discharge limits contained in water use licences (WUL) for our SSO, Satellite, SO and Natref operations were identified. We have addressed these deviations through amendment applications, corrective action plans and also assessed and furthered groundwater remediation options for implementation where necessary.

• Air quality compliance challenges were experienced and reported to the DEA. Our operations in Secunda and Sasolburg experienced deviations from AEL conditions and environmental incidents which were duly reported to the authorities. This included statutory environmental incident reports by SCO on exceedances of emission limit values at the octene regenerator stack. SSO reported an environmental incident regarding exceedances of stack emission limit values at the catalyst manufacturing plant and regarding a gas release related to a ruptured line. In the latter instance, it was necessary to implement emergency procedures to isolate the area to contain a further gas release. An immediate potential safety or environmental risk was thereby successfully averted. The necessary corrective actions were taken to enable and sustain compliance.

Following heavy rains in February 2017, SSO proactively reported anticipated delays with the completion of the construction and safe commissioning of Regenerative Thermal Oxidisers (RTOs) required for emissions abatement. Commissioning activities of the last two RTOs started in May 2017, subject to further modifications being implemented to support safe, reliable and sustainable operations. Other challenges

communicated by SSO to the local licensing authority included ammonia venting following start up due to a power dip, and exceedance of hydrogen sulphide emission limits pertaining to the sulphur recovery plant following various unexpected operational incidents during the September shutdown. SSO enabled compliance by undertaking the necessary repairs following the plant shutdown and has since sustained compliance with all applicable limits.

The sulphur oxides (SOx) N-Base scrubber at SO has been experiencing challenges with sulphur trioxide concentrations which was reported to the local licensing authority. Additional sampling has been conducted to support optimisation, which has since enabled compliance. Engagement with the local licensing authority is ongoing. SO also submitted a statutory report regarding a black smoke incident associated with flaring necessitated by a forced shutdown from a complete loss of power supply to parts of the plant. The power supply interruption was unrelated to Sasol’s activities.

Natref in Sasolburg reported an incident following an explosion and fire at a hydrogen compressor. Emergency control and mitigation actions implemented necessitated the shutting down of five affected units and consequently also the Sulphur Recovery Unit (SRU) due to a lack of feed. It therefore did not result in environmental or community impacts.

• SSO is following a licence amendment process to align its licence with changed legal and operational requirements in the interest of sustained compliance.


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Sustainable air quality

Our ability to anticipate and respond to the changing regulatory and policy landscape is one of our most material challenges, particularly in the context of the air quality legislation applicable to our existing plants in South Africa.

OUR AIR FOOTPRINT

• The R 3,4 billion VOC abatement project has shown significant progress over the past 12 months, with VOC emissions reducing from 46,2 kilotons in 2016 to 41,0 kilotons over the reporting period, providing momentum for the significant anticipated emissions reductions over the next year.

• This year, our total NOx emissions of 152 kilotons (kt), showed marginal improvement, down slightly from 156 kt in 2016.

• The reduction in total SOx emissions to 202 kt, down from 223 kt in 2016, was due to better coal quality.

• Total particulate (fly ash) emissions remained relatively constant at 10,0 kt compared with 9,8 kt in 2016.

• We submitted our annual reports on compliance with applicable AELs in South Africa to the respective authorities.

• We received approval from the National Air Quality Officer for our air quality offset plans as per the conditions of the postponement decisions relating to our AELs.

• We received the AEL for the gas engine power plant in Sasolburg in February 2017.

2017 AT A GLANCE

• We remain committed to compliance and to promoting sustainable ambient air quality improvement, thereby minimising the environmental impact of our activities.

• We continue to improve our ability to track and report accurately on our environmental performance. During the year we rolled out the implementation of a lagging environmental indicator. As part of a more mature approach, we are also developing a set of leading environmental indicators aimed at proactively assessing our performance to improve our ability to prevent environmental incidents.

• In South Africa, legislated minimum emission standards (MES) make provision for industrial point source emission limits. These MES require our plants to meet new plant standards by April 2020 by retrofitting abatement equipment where needed. Some of the new plant standards pose significant compliance challenges from a technical and financial feasibility perspective.

In proactively managing compliance within extended timeframes, we applied for and received initial postponements for a number of the MES applicable to existing plants in 2015 and 2016. As part of our postponement applications, we have outlined air quality improvement plans for these emission sources.

Some of the improvement plans include a roadmap to achieve a significant reduction in the emissions of six volatile organic compounds (VOC) by June 2020 (on our 2009 baseline), as well as ensuring successful implementation of approved offset plans for our Secunda facilities. Over the past year we have advanced the air quality improvement roadmaps and offset projects according to plan, and we continue to report our progress. To ensure success, these roadmaps and other environmental projects are supported by capital commitments. We have established a South African operations-wide governance structure to oversee the optimisation and execution of these projects.

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Climate change and energy efficiency

The anticipated policy and physical implications of climate change present a significant potential risk to our business, with climate change being one of the most important challenges we face. In 2016, the United Nations (UN) Paris Agreement came into force, setting new targets for climate change and promoting sustainable economic growth and access to modern energy. This will require collaboration between governments, citizens and businesses. Sasol remains committed to responding to these challenges.

OUR CARBON FOOTPRINT

• We report our greenhouse gas (GHG) emissions consistent with the recommendations of the Intergovernmental Panel on Climate Change (IPCC). Our total global GHG emissions (measured in CO2-equivalent) reduced to 67,6 million tons (Mt) in 2017 from 69,3 Mt in 2016, with our coal-to-liquids process in Secunda being the primary contributor to the improvement in our Group GHG footprint largely due to more stable operations and energy efficiency improvements.

This figure includes direct emissions associated with our processes and our own road tanker fleets (Scope 1 emissions), as well as the indirect emissions associated with our electricity imports (Scope 2 emissions).

• Our GHG emissions intensity (tons CO2e per ton of production) decreased to 3,66 in 2017 from 3,68 in 2016, due to a decrease in absolute emissions at our Secunda facility.

2017 AT A GLANCE

• Sasol supports the UN Paris Agreement on climate change, seeking to limit global warming to well below 2°C above pre-industrial levels.

• While we agree that climate change is a global issue, we continue to engage actively with the South African government on climate change mitigation and adaptation policy. A cautious and aligned approach has been adopted, balancing the national priorities of reducing poverty and achieving economic growth with international commitments. In early 2017, the first draft of South Africa’s climate change regulatory framework was released for comment.

• As a founding signatory to the South African Energy Efficiency Accord (the Accord), we have a long-standing commitment to promoting energy efficiency as a key business driver, in addition to the benefit of GHG reductions. Following the utility energy efficiency improvement Sasol achieved under the Accord for our operations in South Africa, we continued to set appropriate interim improvement objectives for several of our South African operations. Once the South African Department of Energy publishes the new 2030 National Energy Efficiency Strategy, we will set new improvement targets aligned to the national objectives.

• Our international operations are implementing standard utility energy efficiency measurement and reporting practices. Once baseline performance has been determined, we will set appropriate global improvement targets aligned with the respective national objectives.

• We are taking steps to understand the resilience of all our facilities to climate change, ultimately reducing the vulnerability of our facilities and infrastructure to potential extreme variability in weather conditions.

• Sasol’s CDP climate change response for 2017 contains more detailed information on our governance approach, strategy, and risks and opportunities. The CDP response is tailored to responding to the Task Force on Climate Related Financial Disclosures recommendations.

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Sasol is voluntarily taking part in the trial phase of the South African carbon budget process. In total, our budget contemplates a limit of 302 Mt carbon dioxide equivalent over five calendar years (2016 to 2020), making provision for growth. For 2016, Sasol South Africa emitted approximately 55 Mt of direct CO2 equivalent emissions (Scope 1) of our total budget, taking project delivery into account. From 2021 onwards mandatory budgets will be set in line with government’s requirements. We are engaging with government on the proposed methodology and will provide the necessary data to enable the setting of appropriate limits.

For more information refer to our CDP climate change response on www.sasol.com (in the downloads tab).


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Water stewardship

The drought experienced since 2015 in the inland region of South Africa provided a reminder of the potentially devastating consequences that droughts can have on society. Fortunately our affected operations in South Africa were able to respond well to the restrictions imposed on potable water use. Although the favourable late summer rains have significantly alleviated the water supply risk, ongoing infrastructure challenges still need to be addressed. The recent water situation has heightened our resolve for ensuring good water stewardship.

2017 AT A GLANCE• Our largest operations in South Africa are dependent on

the Integrated Vaal River System (IVRS), from which we continued to receive our full allocation, despite drought conditions. In response to the drought and water infrastructure challenges, we hosted a risk workshop with the Department of Water and Sanitation (DWS) and Eskom to identify improvement opportunities. At our operating sites, we have a process in place to monitor community water-related complaints.

• Ongoing participation in integrated watershed management initiatives is key to our water stewardship focus areas. Together with improving water use efficiency, and in line with our commitment to collective action and to catchment management, we believe that the joint initiatives with municipalities to save water will make a more meaningful contribution to water security for all stakeholders reliant on this important water supply catchment area.

• We continued to implement internal water-use efficiency targets for our most water-intensive operations for the five-year period up to 2020:

– Our Sasolburg Operations’ target is to maintain the 2015 baseline of 9,8 tons of water use per ton of saleable production; this year we managed to achieve a 2% improvement against the baseline.

– Our Secunda Synfuels Operations’ target is to achieve a 2,5% improvement in water intensity against actual consumption in 2014 of 11,6 tons of water per ton of saleable production; this year we reported a 2,1% deterioration against the baseline. The deterioration can be attributed to key water-generating equipment being down for maintenance and therefore not being available to offset some raw water intake.

– Our mining operations reported a 17% improvement during 2017 against the 2015 baseline, meeting their target of restricting the increase in potable water use to a maximum of 10%.

• Our OMEs are committed to managing water responsibly and ensuring that our water footprint for current operations will not fundamentally increase over the next five years. Our two most water-intensive facilities, Sasolburg and Secunda Synfuels 0perations, achieved reductions in potable water use of 29% and 19% respectively, compared with the previous year.

OUR WATER FOOTPRINT• Our total water consumption decreased from

138,6 million m3 in 2016 to 137,1 million m3.• The total quantity of water recycled in 2017 was

178,4 million m3, up from 174,7 million m3 in 2016. • For the 2016 CDP Water Disclosure response, Sasol

achieved a commendable B score, scoring well on disclosure on direct risk and exposure, governance, strategy and context, but falling short on the information supplied on water risks in our supply chain.

• We remain involved in a water conservation/water demand management project for the Metsimaholo Local Municipality (MLM) in Sasolburg, in collaboration with Rand Water (as implementing agent), German Agency for International Cooperation (GiZ) and the DWS. A 23% water saving in Zamdela (in the Sasolburg area) was achieved as a result of infrastructure upgrades and advanced pressure management interventions.

• Following on from the ‘war on leaks’ project in 2015, Secunda’s Social Investment (SI) team has partnered with Cobra Watertech (Pty) Ltd and Rand Water Foundation to implement a ‘war on leaks’ programme involving the training of 60 plumbers to be potentially used in Govan Mbeki Municipality (GMM) to reduce leaks. Secunda SI and GMM have also agreed a memorandum of understanding to implement a water revenue enhancement project; Secunda SI contributed R3,5 million and GMM R3,5 million. We are jointly developing a water demand/losses baseline.

• We received an amended integrated WUL for our Sasolburg Operations.

• As a signatory to the UN Global Compact CEO Water Mandate we have again published an annual Communication on Progress against the 6 focus areas of the Mandate.

For more information refer to our UNGC COP on www.sasol.com (in the downloads tab).

• We established a constructive engagement platform with the DWS to resolve administrative matters relating to water use licences.


Waste, contaminated land and biodiversity

The changing legal and policy landscape, particularly in South Africa, requires us to find alternative solutions to some of the existing waste management and disposal practices at many of our operations, as well as to ensure continued responsible management of land and biodiversity.

OUR WASTE FOOTPRINT• We generated 348 kt of hazardous waste, up from

323 kt in 2016. The increase is due mainly to on-site remedial activities at our mining operations.

• Stricter waste management requirements necessitated us to look at alternatives, including greater off-site handling and disposal of waste by third party service providers.

• Sasolburg Operations has completely phased out on-site hazardous waste disposal and initiated re-use of legacy ash.

• We generated 154 kt of non-hazardous waste, down from 175 kt in 2016.

• Total recycled waste increased to 151 kt from 70 kt. The increase in recycled waste was attributed to the recycling of metal at our various mining operations.

2017 AT A GLANCE

• Our approach to waste management is informed by the general principles of the waste management hierarchy set in legislation. We are working in partnership with selected universities and third party waste managers to explore innovative opportunities for waste minimisation and reduction, including the composting of some of our industrial waste sludges.

• We are phasing out or improving many on-site waste disposal practices: this includes closing and rehabilitating redundant waste sites in both Sasolburg and Secunda.

• We recognise that waste, air, contaminated land and water legislation are integrally linked, specifically in the regulation of waste incineration and waste derived fuel (air) as well as landfilling (disposal restrictions and water specifications), requiring an integrated management approach.

• We continue to have constructive engagements with regulators through the Industry Waste Management Forum established between business and Department of Environmental Affairs (DEA).

• Our operations in South Africa have made progress in undertaking site assessments to advance land risk management for the areas where notifications have been received in terms of Part 8 of the National Environmental Management: Waste Act.

• Our approach to biodiversity varies across our operations and activities, and is tailored to respond to the specific situation. Biodiversity assessments are conducted on all significant new developments as part of environmental impact assessments. We do not currently have operations in areas that have been declared ‘biodiversity hotspots’ – areas identified as being critical or endangered eco-regions. We do, however, have interests in areas of potential sensitivity, particularly linked to our upstream exploration and production activities.

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Product stewardship

Through our business partnership and engaged stakeholder approach we promote the safe management of our products. Enhancing our SHE performance and sustainability throughout the product lifecycle is central to our ongoing commitment towards zero harm. Our commitment to promoting product stewardship includes gaining a sound understanding of the hazards, risks, opportunities and international chemical control legislative requirements for all our products.

Influencing business partners and engaging key stakeholders:

• Under the auspices of the ICCA Responsible Care® in Africa Task Force, led by Sasol and BASF with support from Dow Chemicals, we have successfully commenced with the adoption of the Responsible Care® initiative in Kenya by the Kenya Association of Manufacturers. Responsible Care® expansion is also intended for Western and Sub-Saharan Africa.

• In partnership with the Chemical and Allied Industries’ Association of South Africa (CAIA), we provided training to representatives from the local chemical and associated industries and to the South African government on the implementation of the Globally Harmonised System (GHS) for the classification and labeling of chemicals.

• We represent organised business on the Advisory Council for Occupational Health and Safety to the South African Ministry of Labour, and have been instrumental in the review and development of key fit-for-purpose occupational health and safety legislation. We have supported the Department of Labour with its strategic priorities in this area, including a focus on capacity building and training on occupational health and safety.

• We held a workshop in partnership with one of our solution providers, The Wercs, a subsidiary of Underwriters Laboratories (UL), with Sasol’s suppliers and customers introducing safe chemicals management and possible solutions to address challenges experienced by our stakeholders in the value chain.

2017 AT A GLANCE

• We undertook a structured review of our product stewardship performance over the past ten years, and identified the fundamentals required to ensure alignment with the Strategic Approach to International Chemicals Management (SAICM) goals through to 2030.

• We are implementing a governance framework to ensure the effective delivery of our product stewardship commitments, providing for:

n Developing and implementing critical controls to address product transportation and stewardship incidents.

n A renewed focus on the accuracy and availability of the Sasol chemical product inventory.

n Reviewing our product stewardship processes globally in the context of the Sasol operating model.

n Reviewing and assigning the roles and responsibilities for product stewardship functions.

n Ensuring system and technology enablers are fully implemented.

n Developing leading and lagging indicators to measure our product stewardship performance.

• Significant efforts were made to ensure compliance with International Chemical Control Legislation through the development of a global cross-functional procedure.

• Strengthened our relationships with the South African government regarding our common goals relating to the SAICM, and have committed to supporting the government in reviewing regulatory frameworks on safe chemicals management.

SAFE PRODUCT ROAD TRANSPORTATIONTransport incidents: Ten significant product-related incidents occurred across the Group, resulting in five tragic third-party and two service provider driver fatalities. This compares to 14 significant incidents and 14 third-party fatalities in 2016. Our product incidents rate (measured as the severity index of the incidents over 1 million km traveled) improved by 36% to 4,09 against a target of 6,50.


Every reasonable effort has been taken to ensure the accuracy of the data. We recognise that some data may be subject to uncertainty relating, for example, to different interpretations of the internal reporting guidelines, and possible human error in recording and submitting data.

The improvement of data quality and accuracy is receiving ongoing attention. Two years ago we implemented a Global Data Management System (SAP Sustainability Performance Management (SuPM)), for key SHE non-financial performance indicators. This system aims at ensuring the appropriate governance of this data collection process and assists in the assurance of the data collected. It also provides for the appropriate approval of data at source level.

In addition, we continuously retrain on Group procedures and key performance indicator definitions. The Safety, Health and Environment (SHE) Vice Presidents and Executive SHE committee have regular discussions on reporting process effectiveness and assurance of data quality issues. We have formalised and follow an internal review process of group-wide SHE&SD data and have initiated a Technical Working Group to address this. Selected SHE & Sustainable Development (SHE&SD) data reporting processes have been integrated into the scope of second party audits; Sasol Assurance Services (SAS) has completed audits on non-financial, non-SHE sustainability data, and Indyebo Inc. together with PricewaterhouseCoopers Inc. (PwC) have completed our annual external SHE&SD data assurance. SAS also provides an overall assessment of the adequacy and effectiveness of the combined assurance landscape related to data integrity. In parallel, the Sasol governance team continues to review and implement controls and testing of this reporting process.

The Sasol SHE assurance sub-function within the Group SHE Function manages the external certification process for our operations. These include the International Organisation for Standardisation (ISO) 14001 and Occupational Health and Safety Assessment Series (OHSAS) 18001 certification, SHE regulatory compliance audits and third party Responsible Care® verification audits. Operations which require ISO 14001 and OHSAS 18001 certification have achieved certification, while most of our German operations are Eco Management and Audit Scheme (EMAS) or ISO 50001 validated. All of North American operations are Responsible Care® (RCMS) and ISO 14001 (RC14001) certified.

Our sustainability reporting follows the GRI’s Sustainability Reporting Standards, including the GRI’s Mining & Metals and Oil & Gas sector supplements. We apply the reporting criteria of the United Nations Global Compact (UNGC), and meet the 21 advanced criteria. We provide a detailed GRI table and a UNGC Communication on Progress at www.sasol.com, along with references to the UN Sustainable Development Goals (SDGs).

For more information refer to our UNGC CDP on www.sasol.com (in the downloads tab).


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Performance dataHuman capital – Our people

External assurance +

2017 2016 2015 2014 2013Level of assurance

Employee numbers1 30 900 30 100 30 919 33 049 34 629Employee turnover 1 523 2 624 3 494 1 826 1 807 Limited

SafetyRecordable Case Rate2 0,28 0,29 0,32 0,36 0,33 Reasonable– Employee 0,36 0,34 0,32 0,37 0,32– Service provider 0,23 0,25 0,32 0,36 0,34Lost Work Day Case Rate (LWDCR) 0,12 0,13 0,13 0,15 0,14– Employee 0,17 0,17 0,14 0,16 0,15– Service provider 0,09 0,10 0,12 0,14 0,14Employee and service provider fatalities 5 2 1 5 5 Reasonable– Employee 4 2 0 3 2– Service provider 1 0 1 2 3Employee and service provider fatal injury frequency rate 0,006 0,002 0,001 0,004 0,005Significant fires, explosions and releases3 21 19 27 30 43 ReasonableSignificant product road transport incidents 10 14 20 29 29 LimitedTotal number of first aid cases 724 695 582 641 926Total number of person hours worked (million) 171,7 170,1 178,35 213,97 229,19– Employee 74 73 82 92 96– Service provider 98 97 96 118 130

Occupational illness4

Irreversible occupational diseases (IROD) have permanent health effects and are recorded as:Asbestosis 2 1 0 0 1Mesothelioma 0 0 0 0 0

Chronic obstructive airway disease (COAD) 612 18 21 6

Occupational asthma (including allergic sensitisation) 1

Pneumoconiosis 9 9 14 21 21Noise-induced hearing loss 21 35 31 23 15Chronic work-related upper limb disorder (WRULD) 1 0 0 0 0Other 1 0 0 2 1

Total 41 57 63 67 44

Reversible occupational diseases (ROD) have temporary health effects and are recorded as:Reactive airway dysfunction syndrome (RADS) 0 NR NR NR NRTuberculosis 29 26 37 36 32Allergic reactions other than RADS 1 NR NR NR NRPost-traumatic stress disorder (PTSD) 0 NR NR NR NRHeat related disease 2 NR NR NR NRShift worker’s sleep disorder 1 NR NR NR NRWork-related upper limb disorder (WRULD) 3 NR NR NR NR

Total 36 26 37 36 32

Skills developmentInvestment in employee learning5 (R million) 970 678 692 901 898Investment in learning as a % of payroll 5,1 4,1 4,8 6,2 6,4Investment in black employees6 (R million) 500 399 510 653 625Development interventions (number of individual interventions)7 158 796 94 208 154 793 230 523 230 871Investment in bursary scheme (R million) 53,0 49,22 40,3 47,0 54,7Undergraduate and postgraduate bursars 473 369 440 577 719Investment in South African universities (R million) 23 15 15,7 15 25Number of employees receiving leadership training 2 005 1 197 2 872 9 191 5 732 LimitedNumber of employees in Sasol’s maintenance artisan learner pools 551 301 296 696 644 Limited

Footnotes are explained on page 26.

}


External assurance+

2017 2016 2015a 2014b 2013c

Level of assurance

Production performanceTotal production (External Sales) (kilotons)8 18 472 18 806 19 490* 22 050 23 696 Reasonable

Greenhouse gases (GHG)9 (kilotons)Direct methane (CH4) 111 119 117 120 118 ReasonableNitrous Oxide (N2O) 0,51 0,45 0,77 0,89 0,61 ReasonableDirect carbon dioxide (CO2) Scope 1 57 281 58 329 58 786 60 530 60 942 ReasonableIndirect carbon dioxide (CO2) Scope 2 7 659 8 046 8 065 8 726 9 012 ReasonableIndirect carbon dioxide (CO2) Scope 310 0,78 0,52 0,75 0,76 412 ReasonableTotal greenhouse gas (CO2 equivalent) 67 632 69 250 69 772 72 275 73 053 ReasonableGHG intensity (CO2 equivalent/ton product) 3,66 3,68 3,58* 3,28 2,98 Reasonable

Atmospheric emissions (kilotons)Nitrogen oxides (NOx) 152 156 157 159 158 ReasonableSulphur oxides (SOx) 202 223 208 223 215 ReasonableVOC indicator of performance11 41,0 46,2 46,5 47,6 47,5Particulates (fly ash) 10,0 9,8 11,7 19,3 17,5 Reasonable

Waste (kilotons)12

Hazardous waste 348 323 320 382 303 LimitedNon-hazardous waste 154 175 162 189 262 LimitedTotal waste 502 498 482 571 1 032 LimitedRecycled waste 151 70 76 89 546

Energy use (thousand gigajoules)13

Electricity (purchased) 28 064 28 810 28 747 31 337 31 423Feedstock to electricity (self-generated)14 26 708 33 367 30 350 48 490 38 691Feedstock to steam 261 403 271 416 280 383 276 703 281 309Mobile fuel use15 521 346 609 671 859Stationary fuel use 3,6 3,3 35 4 NRFuel gas 67 106 66 261 61 786 57 230 68 828Other energy use 13 038 12 770 11 928 10 821 6 691Total energy use 396 844 412 973 413 838 425 257 427 801 Reasonable

Material use (kiloton)16

Coal (dry ash-free basis) 17 961 17 963 17 674 17 556 17 896Crude oil processed (kilotons) 4 379 4 529 4 457 4 133 3 392Crude oil processed (mm bbl) 32,33 33,44 32,90 30,51 25,05Nitrogen from air 583 528 718 1 356 3 527Oxygen from air 12 873 12 747 12 711 14 907 15 017Natural gas (kilotons) 2 007 2 099 2 800 3 949 3 616Natural gas (bscf)17 96,91 101,35 135,20 190,69 174,61Other (eg chemicals, feedstock) 4 123 5 841 5 136 6 357 6 892Total material use 41 926 43 708 43 496 48 259 50 340 Reasonable

Water (thousand cubic meters)Total water use 137 061 138 622 135 458 149 552 147 001 LimitedLiquid effluent 29 313 27 544 28 573 35 833 33 307Water recycled 178 420 174 704 196 682 186 751 145 466 Limited

Land and biodiversity (hectares)18

Surface area affected by operations 11 344 11 470 6 629 5 245 4 518Area dedicated to conservation 5 743 5 792 5 333 5 335 2 324

Land use and mining (hectare)Underground mining area19 29 514 28 877 28 168 27 459 26 748

Legal compliance20

Fines, penalties and settlements (number) 1 0 0 0 7Fines, penalties and settlements (US$m) 0,018 0 0 0 0,04

Footnotes are explained on page 26.

Performance dataNatural capital – The environment


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Annual Financial Statements.

2017 2016 2015 2014 201321

Value added statement (unaudited) Rm Rm Rm Rm Rm

Turnover 172 407 172 942 185 266 202 683 169 891Less: Purchased materials and services 98 697 106 473 102 837 (116 746) (95 958)

Value added 73 710 66 469 82 429 85 937 73 933Finance income 2 639 2 328 3 331 5 364 2 735

Wealth created 76 349 68 797 85 760 91 301 76 668

Employees 26 872 26 372 24 370 30 747 23 033Providers of equity 9 767 12 482 14 185 24 085 11 624Providers of loan capital (interest) 6 029 4 593 3 348 2 455 2 108Direct taxes paid to government 7 134 8 332 8 830 12 929 11 337Reinvested in Group 26 547 17 018 35 027 31 085 27 566

Wealth distribution 76 349 68 797 85 760 91 301 76 668

Number of employees for the period 30 900 30 100 30 919 33 400 33 746Turnover per employee 5 579 514 5 745 580 5 991 978 6 068 353 5 034 404Value added per employee 2 385 437 2 208 272 2 665 966 2 572 964 2 190 867Wealth created per employee 2 470 841 2 285 615 2 773 699 2 733 563 2 271 914

Broad-Based Black Economic Empowerment (B-BBEE) 2017 20201616 2015 2014 2013

B-BBEE verification certificate, with a goal of reaching at least a level 4 status by 2020^ Level 8 Level 8 Level 4 Level 3 Level 4Preferential procurement (score out of 25)** 14,9 12,4 18,6 18,7 17,9Preferential procurement (R billion) from all suppliers*** 38,0 17,8 36,9 33,4 28,6

^ In 2016, in terms of the Department of Trade and Industry’s revised Codes of Good Practice, our B-BBEE contributor status declined to level 8 from level 4. We view B-BBEE in South Africa as a business imperative and have embarked on a project to realise over time the goals envisaged by the revised codes.

a All data from ORYX GTL excluded as they report separately.b All data from Sasol Solvents Germany excluded due to the sale of the operations.c All data from our operations in Iran excluded due to the sale of the operations.* Total production (external sales) restated for 2015 due to further refinement in the methodology and alignment with the operating model, reduced from 20 855 kilotons.

This has a direct effect on the GHG intensity also restated for 2015.** Score changed in 2016 to 25 as a result of the new code, previous years it was out of 20. The new qualification methodology pertaining to the B-BBEE recognition level contributed

to the lower score during 2016 and 2017. Specific strategies and action plans are being implemented to assist Sasol in achieving a level 4 status by 2020. *** The increase in the preferential procurement number is due to more new B-BBEE certificates and affidavits being received from suppliers.NR: Not reported+ Assurance refers to the 2017 parameters independently verified by the external assurance provider in 2017, in accordance with the statement provided on page 30.1 Global Headcount (HC) refers to employees that are assigned to approved Sasol organisational structure Staff Establishment positions, including permanent and non-permanent

structures (project positions, non-permanent employee positions) as well as individuals that exist outside of formally approved Sasol organisational structures. These actual headcount figures are not tracked by Group Organisational Design (OD).

2 The Recordable Case Rate (RCR) is a measure for reporting work-related injuries. The RCR is the number of fatalities, lost workdays cases, restricted work injuries and medical treatment cases for every 200 000 employee hours worked.

3 A fire, explosion or release (FER) incident is registered as ‘significant’ when it meets any of the following criteria: (i) it involves a fatality or lost workday case; (ii) it results in damage of more than US$25 000; or (iii) it causes a release in excess of the relevant threshold quantity for that chemical as defined by the Centre for Chemical and Process Safety (CCPS).

4 Illnesses are recorded as work-related as a precautionary measure. The various evaluation authorities may subsequently classify them as not work-related, in which instance they are removed from the records. In addition, service provider illnesses have been recorded. Reversible and irreversible occupational diseases are now separated and additional reporting categories have been included to enable a comprehensive disease overview required for continuous improvement and a proactive approach in occupational health management.

5 Investment in employee learning excludes the compulsory 1% skills levy.6 Black employees refers to African, Coloured and Indian people – for the purposes of South African employment equity considerations.7 Investment in skills development ramped up during 2017, despite the Response Plan, as committed during 2016.8 Total product decreased due to reduced production at our mining operations, mostly from their export plant.9 Greenhouse gas (GHG) emissions have been calculated and reported in accordance with the GHG Protocol (www.ghgprotocol.org) and the Intergovernmental Panel on Climate

Change (IPCC) 2006 Guidelines. In our GHG measurements, we have included 100% of the emissions for the following joint ventures (JVs): Natref in South Africa and Sasol Exploration & Production International. Data for those JVs where we do not have a significant influence or operational control is not included. An external assurance provider has once again independently verified our direct and indirect emissions levels.

10 Indirect carbon dioxide (CO2) Scope 3 increased due to increased charter flight fuel (Mozambique).11 VOC indicator of performance decreased due to implementation of projects on the VOC roadmap. 12 Waste: the definitions of waste vary widely around the world. For reporting purposes, we use the applicable definitions of regulatory authorities. In situations with insufficient

guidance from legislation, the definitions of hazardous waste are reported if it is (i) removed from the premises for disposal and/or treatment, or (ii) disposed of on-site (eg by landfill). These figures exclude coarse ash from gasification and fly ash from boilers. Non-hazardous waste is waste which requires disposal on a general waste landfill site. Recycled waste is materials left over from manufacturing or consumption, which may be reused or recycled. Hazardous and non-hazardous waste figures have included recycled waste figures since 2013. The data reported in this report has been corrected historically using the revised calculation. The reporting on total waste generated by Sasol has been revised to exclude the reuse of legacy coal ash which explains the significant decrease in total waste recycled from 546 kt in 2013 to 89 kt in 2014.

13 Energy use: all energy use data are calculated at the standard measurement unit in gigajoules (GJ) to ensure standard calculation the Group.14 Feedstock to electricity (self-generated) reduced at SSO and SO due to various problems at steam stations (wet coal, ash hoppers) causing low steam availability for generation. The

value is also lower due to less natural gas consumed at SGEPP and lower coal consumption at Steam Stations. 15 Mobile fuel use increased due to increased use of vehicles during shutdowns.16 Material use: all material data are calculated at the standard measurement unit of kilotons (Kt) to enable calculation of input material across the Group.17 Natural gas (material use) reduced due to better quality of pure-gas produced and used in the plant.18 Managing land use and biodiversity: we do not have operations in areas that have been declared biodiversity hotspots (areas identified as being critical or endangered eco-regions).

However, we do have interests in areas of potential sensitivity, particularly as part of some of our upstream exploration and extraction activities. In accordance with our environmental management practices, the protection of biodiversity issues is addressed formally in new projects through environmental impact assessments (EIAs) and in existing projects through environmental management plans and/or programmes (EMPs). We are also working to assess the biodiversity of the habitats in land currently owned, leased or managed throughout the Group.

19 Underground mining area exclude pillars left underground and have been restated for the period 2013 – 2016.20 Legal compliance: the figure includes significant fines and penalties for non-compliance with all applicable international, regional, national and local laws and regulations

associated with safety, health and environmental issues. Payments include fines due to non-compliance with laws, regulations and permits, compensation payments and regular proactive payments made as a result of non-compliance with regulations where there is a potential for any enforcement action. The payments do not include levies, or costs for lawyers and product liabilities. For more information on competition matters, please refer to the Annual Financial Statements. The fine was at our Sarroch Operations, Italy (15 000 Euro) (Refer to pages 16 and 25).

21 Restated to reflect the adoption of the consolidation suite of accounting standards.

Performance dataSocial capital – Society


Performance dataOur 2017 employee diversity performance

The following graphs indicate our gender diversity across the areas in which we operate.

Eurasian operations

MaleFemale

78%

22%

North America operations

MaleFemale

80%

20%

South Africa operations

MaleFemale

77%

23%

Mozambique operations

MaleFemale

85%

15%

Workforce diversity profile1 for our South African operations (as at 30 June 2017)

Male Female Foreign nationals3 Total employees in categoryPercentage A C I W A C I W Male Female

% 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016

Top management 6 6 1 1 2 2 21 20 2 2 1 1 2 1 1 1 3 1 0 0 39 35

Senior management 110 108 17 18 107 106 511 532 42 35 11 10 36 36 114 116 15 16 2 2 965 979

Middle management 944 895 124 116 295 287 1 504 1 550 524 466 76 68 225 227 714 718 61 64 17 19 4 484 4 410

Junior management 5 205 4 906 243 245 292 299 3 434 3 499 1 447 1 276 179 164 159 152 1 242 1 221 41 51 13 13 12 255 11 826

Semi-skilled 6 379 6 222 99 93 71 58 744 745 1 129 1 101 54 51 10 10 174 172 200 208 3 2 8 863 8 662

Defined decision-making 596 645 13 12 4 3 93 103 215 231 4 5 0 0 10 12 8 10 1 1 944 1 022

Total permanent employees2

13 240 12 782 497 485 771 755 6 307 6 449 3 359 3 111 325 299 432 426 2 255 2 240 328 350 36 37 27 550 26 934

Non-permanent 64 10 0 0 2 0 3 17 38 7 0 4 1 2 2 24 0 0 0 0 110 64

Total including non-permanent employees

13 304 12 792 497 485 773 755 6 310 6 466 3 397 3 118 325 303 433 428 2 257 2 264 328 350 36 37 27 660 26 998

A – African, C – Coloured, I – Indian, W – White.1 Workforce diversity profile as per the South African Department of Labour Guidelines.2 Non-permanent employees employed for more than three months are counted as permanent employees.3 Foreign nationals are employees employed in South Africa that are not South African citizens.4 Top management 2016 numbers restated to include inbound expats.


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* 2017 workforce diversity numbers include South African inbound expats.

%

Male Female

Top management

0

20

40

60

80

100

2017 2016

African

2017 2016

Coloured

2017 2016

Indian

2017 2016

White

2017 2016

Foreign* Nationals

%

Male Female

Senior management

2017 2016

African

2017 2016

Coloured

2017 2016

Indian

2017 2016

White

2017 2016

Foreign* Nationals

0

20

40

60

80

100

%

Male Female

Middle management

2017 2016

African

2017 2016

Coloured

2017 2016

Indian

2017 2016

White

2017 2016

Foreign* Nationals

0

20

40

60

80

100

%

Male Female

Junior management

2017 2016

African

2017 2016

Coloured

2017 2016

Indian

2017 2016

White

2017 2016

Foreign* Nationals

0

20

40

60

80

100

%

Male Female

Semi-skilled

2017 2016

African

2017 2016

Coloured

2017 2016

Indian

2017 2016

White

2017 2016

Foreign* Nationals

0

20

40

60

80

100

%

Male Female

Defined decision-making

2017 2016

African

2017 2016

Coloured

2017 2016

Indian

2017 2016

White

2017 2016

Foreign* Nationals

0

20

40

60

80

100

Performance dataOur 2017 employee diversity performance for our South African operations (continued)


We have been engaged by the directors of Sasol Limited (the “Company”) to perform an independent assurance engagement in respect of Selected Sustainability Information reported in the Company’s Supporting Information to the Integrated Report for the year ended 30 June 2017 (the “Report”). This report is produced in accordance with the terms of our contract with the Company dated 10 February 2017.

Independence, quality control and expertiseWe have complied with the independence and other ethical requirements of the Code of Professional Conduct for Registered Auditors issued by the Independent Regulatory Board for Auditors (IRBA Code), which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. The IRBA Code is consistent with the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (Part A and B).

The firms applies International Standard on Quality Control 1 and, accordingly, maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Our engagement was conducted by a multi-disciplinary team of environmental and assurance specialists with extensive experience in sustainability reporting.

Scope and subject matterThe subject matter of our engagement and the related level of assurance that we are required to provide are as follows:

Reasonable assuranceThe following was selected for an expression of reasonable assurance:

• Recordable Case Rate (RCR), including employees and service providers (page 24)

• Total Greenhouse Gas (GHG) (CO2 equivalent kiloton) (page 25)

• Total Scope 1: direct GHG emissions (kiloton) (page 25)

• Total Scope 2 and 3: indirect GHG emission (kiloton) (page 25)

• Total methane (CH4) (kiloton) (page 25)

• Total direct nitrous oxide (N2O) (kiloton) (page 25)

• GHG intensity rate (page 25)

• Total energy use (thousand GJ) (page 25)

• Total material use (kiloton) (page 25)

• Atmospheric emissions: Particulates Fly Ash (kiloton) (page 25)

• Atmospheric emissions: Nitrogen oxides (NOx) (kiloton) (page 25)

• Atmospheric emissions: Sulphur oxides (SOx) (kiloton) (page 25)

• Total production (external sales) (kiloton) (page 25)

• Number of fatalities (employees and service providers) (page 24)

• Number of significant fires, explosions and releases (page 24)

Limited assuranceThe following was selected for an expression of limited assurance:

• Total water use (thousand m3) (page 25)

• Water recycled (thousand m3) (page 25)

• Total hazardous waste (kiloton) (page 25)

• Total non-hazardous waste (kiloton) (page 25)

• Total waste (kiloton) (page 25)

• Number of significant transport incidents (page 24)

• Employee turnover (page 24)

• Number of employees in Sasol’s maintenance artisan learner pools (page 24)

• Number of employees receiving leadership training (page 24)

We refer to this information as the “Selected Sustainability Information”.

We have carried out work on the data reported for the year ended 30 June 2017 only and have not performed any procedures with respect to earlier periods, except where specifically indicated, or any other elements included in the Report and, therefore, do not express any conclusion thereon. We have not performed work in respect of future projections and targets.

Respective responsibilities of the directors and PricewaterhouseCoopers Inc. and Indyebo Inc.Sasol’s directors are responsible for delegating to management, and overseeing and approving, the selection, preparation and presentation of the Selected Sustainability Information in accordance with the criteria set out in the Company’s Group Procedure for sustainable development reporting definitions set out on the corporate website www.sasol.com, referred to as the “Reporting Criteria”.

Sasol’s directors are also responsible for delegating to management, and overseeing, the designing, implementing and maintaining internal controls as the directors determine is necessary to enable the preparation of the Selected Sustainability Information that are free from material misstatements, whether due to fraud or error.

Management provides regular reports to the directors at the Risk and SHE Committee on progress and areas of concern. The directors obtain external assurance on certain Selected Sustainability Information which is reported on at the Risk and SHE Committee.

Our responsibility is to form an independent conclusion, based on our reasonable assurance procedures, on whether the Selected Sustainability Information for reasonable assurance has been prepared, in all material respects, in accordance with the Reporting Criteria.

We further have a responsibility to form an independent conclusion, based on our limited assurance procedures, on whether anything has come to our attention to indicate that the Selected Sustainability Information for limited assurance has not been prepared in all material respects, in accordance with the Reporting Criteria.

This report, including the conclusion, has been prepared solely for the directors of the Company as a body, to assist the directors in reporting on the Company’s sustainable development performance and activities. We permit the disclosure of this report within the Report for the year ended 30 June 2017, to enable the directors to demonstrate they have discharged their governance responsibilities by commissioning an independent assurance report in connection with the Report. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the directors as a body and the Company for our work or this report save where terms are expressly agreed and with our prior consent in writing.

INDEPENDENT ASSURANCE REPORT TO THE DIRECTORS OF SASOL LIMITED

www.sasol.com


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Inherent limitationsNon-financial performance information is subject to more inherent limitations than financial information, given the characteristics of the subject matter and the methods used for determining, calculating, sampling and estimating such information. The absence of a significant body of established practice on which to draw allows for the selection of different but acceptable measurement techniques which can result in materially different measurements and can impact comparability. Qualitative interpretations of relevance, materiality and the accuracy of data are subject to individual assumptions and judgements. The precision of different measurement techniques may also vary. Furthermore, the nature and methods used to determine such information, as well as the measurement criteria and the precision thereof, may change over time. It is important to read the Report in the context of the Company’s Group Procedure for sustainable development reporting definitions set out on the corporate website.

In particular, where the information relies on carbon and other emissions conversion factors derived by independent third parties, or internal laboratory results, our assurance work has not included examination of the derivation of those factors and other third party or laboratory information.

Conclusions

Reasonable assuranceBased on the results of our reasonable assurance procedures, in our opinion, the Selected Sustainability Information for the year ended 30 June 2017, has been prepared, in all material respects, in accordance with the Reporting Criteria.

Limited assuranceBased on the results of our limited assurance procedures, nothing has come to our attention that causes us to believe that the Selected Sustainability Information for the year ended 30 June 2017, has not been prepared, in all material respects, in accordance with the Reporting Criteria.

Other matters The maintenance and integrity of the Sasol corporate website is the responsibility of Sasol Directors. Our procedures did not involve consideration of these matters and, accordingly we accept no responsibility for any changes to either the information in the Report or our independent assurance report that may have occurred since the initial date of presentation on the Sasol website.

PricewaterhouseCoopers Inc. Indyebo Inc.Registered Auditor Registered AuditorDirector: Jayne Mammatt Director: Nondumiso Medupe

Johannesburg Centurion

28 August 2017 28 August 2017

Assurance work performedWe conducted our assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000 (Revised): Assurance Engagements other than Audits and Reviews of Historical Financial Information, and, in respect of greenhouse gas emissions, International Standard on Assurance Engagements (ISAE) 3410: Assurance Engagements on Greenhouse Gas Statements, issued by the International Auditing and Assurance Standards Board. These standards require that we comply with ethical requirements and that we plan and perform the assurance engagement to obtain limited assurance on the Selected Sustainability Information as per the terms of our engagement.

Our work included examination, on a test basis, of evidence relevant to the Selected Sustainability Information. It also included an assessment of the significant estimates and judgements made by the directors in the preparation of the Selected Sustainability Information. We planned and performed our work so as to obtain all the information and explanations that we considered necessary in order to provide us with sufficient evidence on which to base our conclusion in respect of the Selected Sustainability Information.

Our work in respect of the Selected Sustainability Information included the following procedures:

• Reviewing the processes that Sasol Limited have in place for determining the Selected Sustainability Information included in the Report.

• Obtaining an understanding of the systems used to generate, aggregate and report the Selected Sustainability Information.

• Conducting interviews with management at head office and selected operations.

• Evaluating the data generation and reporting processes against the Reporting Criteria.

• Performing key controls testing and testing of accuracy of data report on a sample basis at head office and the selected operations for the Selected Sustainability Information.

• Reviewing the consolidation of data at head office to obtain an understanding of the consistency of the reporting process compared with prior years and to obtain explanations for deviations in performance trends.

• Reviewing the consistency between the Selected Sustainability Information and related disclosures in the Report.

A limited assurance engagement is substantially less in scope than a reasonable assurance engagement under ISAE 3000 (Revised). Consequently, the nature, timing and extent of procedures for gathering sufficient appropriate evidence are deliberately limited relative to a reasonable assurance engagement, and therefore less assurance is obtained with a limited assurance engagement than for a reasonable assurance engagement. The procedures selected depend on our judgement, including the assessment of the risk of material misstatement of the Selected Sustainability Information, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Company’s preparation of the Selected Sustainability Information in order to design procedures that are appropriate in the circumstances.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.

INDEPENDENT ASSURANCE REPORT TO THE DIRECTORS OF SASOL LIMITED (continued)

www.sasol.com


CARBON FOOTPRINT CALCULATION: SASOL’S SUSTAINABILITY REPORTINGWe calculated the CO2 emissions associated with the business travel of the consultants who assisted Sasol in compiling this report and auditing the data. Using the World Resources Institute’s SafeClimate carbon footprint calculator, this amounted to 13,2 tons of CO2 equivalent.

*

* Integrated Reporting & Assurance Services (IRAS) confirms that Sasol has been independently assessed according to 96 Environmental, Social and Governance (ESG) quantitative comparable data indicators within the Sustainability Data Transparency Index (SDTI), and consistently achieves a data transparency score within the Top 10% of the roughly 300 JSE-listed companies reviewed (1st in Sector). Created by IRAS, the SDTI measures listed companies’ commitment to ESG data transparency, allowing stakeholders the opportunity to contrast and compare ESG performance between peer companies, against prior year performance, or against stated commitments and/or targets. For more information, contact [email protected].

Additional information

Under our commitment to sustainable development as a strategic priority, the work that we do is subject to independent review. Recognitions, participation in indexes, initiatives and commitments include:

FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that Sasol has been independently assessed according to the FTSE4Good criteria, and has satisfied the requirements to become a constituent of the FTSE4Good Index Series. Created by the global index provider FTSE Russell, the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE4Good indices are used by a wide variety of market participants to create and assess responsible investment funds and other products.


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The suite of reports is available on our website, www.sasol.com, or on request from Sasol Corporate Affairs. Should you have any further queries or comments regarding this report, or our sustainability performance, please email our Corporate Affairs at [email protected].


Documents

SASOL LIMITED · SASOL LIMITED Sustainability ... • Evaluating scenario ... in contributing to the socio-economic development of the communities where we operate, and need